Saudis See Need for Major Oil Supply Cut Amid Fears of Glut

Reduction of 1 million barrels a day may be required: Al-Falih
Russia says it wants to wait and see before making a decision

BP CEO Says Saudi Oil-Output Cut Is Likely to ‘Firm the Price'

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By Grant Smith, Anthony Di Paola, Mohammed Sergie, and Mahmoud Habboush

November 12, 2018 at 9:58 AM UTC

Updated on

November 12, 2018 at 6:58 PM UTC

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Saudi Arabia said OPEC and its allies should reverse about half the increase in oil output they made earlier this year as fears of shortages are supplanted by concerns about oversupply and collapsing prices.

Producers need to cut about 1 million barrels a day from October production levels, Saudi Energy Minister Khalid Al-Falih said in Abu Dhabi on Monday. The kingdom will reduce shipments by about half that amount next month, making its second policy U-turn after a summer surge in prices was followed by a swift collapse into a bear market this month.